Rob Frohn, CFO. Q Results Organon and Coatings drive strong performance

Transcription

1 Rob Frohn, CFO Q Results Organon and Coatings drive strong performance July 20, 2006

2 Q headlines Strong autonomous growth, across all segments Net income nearly doubled Strong financial position

3 Q2 OPERATIONAL PERFORMANCE

4 Strong operational performance EUR mln Q % Revenues 3,574 7 EBIT* Net income Ratios EBIT margin*, % * Excluding incidentals

5 Organon U.S. approval for ImplanonTM

6 Organon double-digit growth Further strong revenue growth in key franchises - Revenues up 12%, contributing to 49% rise in operating income - NuvaRing accelerating in U.S.; over 1 million users world-wide - Biotech product Puregon enjoys record quarter Investing in pipeline - R&D expenses EUR 125 million, up 26%

7 Organon continued strong growth EUR mln Q % Revenues EBIT* Ratios EBIT margin*, % S&D % revenues R&D % revenues * Excluding incidentals

8 Intervet companion animals growth

9 Intervet autonomous growth of 6% Revenues ongoing business up 6% to EUR 280 million Strong growth in Americas and Europe EBIT margin slightly down higher selling expenses Focus on core activities; Crina (feed additives) divested

10 Intervet autonomous growth of 6% EUR mln Q % Revenues ongoing business EBIT* 51 (6) Ratios EBIT margin*, % S&D % revenues * Excluding incidentals

11 Nobilon NVI vaccine deal Nobilon is active in the field of human vaccines Contract with Netherlands Vaccine Institute (NVI) to develop vaccine against respiratory syncytial virus (RSV) RSV is a viral infection which can prove fatal to young children and the elderly; no preventive treatment by vaccine is currently available

12 Launch Akzo Nobel Global Coatings Report First ever overview of Global Coatings Market World wide Coatings market; USD 86 billion Akzo Nobel #1 with appr. 8% market share Highly attractive growth opportunities

13 Coatings record quarter, strong profit growth Excellent 6% volume growth; revenues up 9% to EUR 1.6 billion Solid demand in China Ongoing pressure from raw materials Cost reduction programs continue in mature markets EBIT and EBIT margin sharply up Completed acquisition Sico, Canada s largest coatings manufacturer

14 Coatings enhancing consumer electronics

15 Coatings record quarter, strong profit growth Industrial activities excellent performance Marine & Protective Coatings strong earnings growth Car Refinishes back on track Decorative Coatings challenging business conditions in Europe

16 Coatings record quarter, strong profit growth EUR mln Q % Revenues 1,643 9 EBIT* Ratios EBIT margin*, % * Excluding incidentals

17 Chemicals key ingredients for top performance

18 Chemicals autonomous growth; increasing energy impact Autonomous growth of 7% to EUR 981 million Volume contributing 3%; prices up 4% Ongoing pressure from high energy cost and oil-related feedstock EBIT and EBIT margin up year-on-year Divestment program close to finalization

19 Chemicals autonomous growth; increasing energy impact Pulp & Paper and Base Chemicals improved performance in spite of increasing energy pressure Polymer Chemicals excellent performance buoyed by strong demand

20 Chemicals autonomous growth; increasing energy impact EUR mln Q % Revenues EBIT* Ratio EBIT margin*, % * Excluding incidentals

21 FIRST HALF YEAR FINANCIAL PERFORMANCE

22 First half year - strong earnings growth HY, EUR mln 2006 % Revenues 6,966 9 EBIT* Net income EBIT margin*, % Number of employees 62,440 61,640 * Excluding incidentals

23 Improved cash flow Cash flow, EUR mln 1HY HY-2005 EBITDA Net cash from operations 168 (31) Net change in cash (144) (446) Capital expenditures Capital expenditures estimate 2006 EUR 500 million

24 Strong financial position June 06 / Dec. 05; EUR bln Equity Net borrowings Gearing (ratio) YTD ratios Interest coverage EBITDA coverage

25 AGENDA 2 nd HALF 2006

26 Agenda 2 nd half 2006 (1) Organon Unlock value late stage product pipeline Continue to grow key franchises Roll-out Implanon TM in U.S. Intervet Focus on core activities continue roadmap improvements

27 Agenda 2 nd half 2006 (2) Coatings/ Chemicals Identify further growth opportunities, organically and via acquisitions Focus on costs in mature markets (mainly EU) Conclude Chemicals divestment program Trading update Confidence in the second half of the year

28 July 20, 2006 Delivering on growth Q results Q&A

29 Safe harbor statement* This presentation contains statements which address such key issues as Akzo Nobel s growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, progress of drug development, clinical testing and regulatory approval, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission, a copy of which can be found on the company s corporate website *Pursuant to the U.S. Private Securities Litigation Reform Act 1995.